Inwido (INWI) Q4 2024 earnings summary

Executive summary

• Achieved a return to organic net sales growth in Q4 2024 after seven quarters of decline, with total Q4 sales up 7% year-over-year and growth across all business areas.

• Order intake grew for the third consecutive quarter, up 20% (19% organically), and order backlog increased by 29% year-over-year, providing confidence for future quarters.

• Maintained a healthy operating EBITDA/EBITA margin of 12.2% in Q4, despite market challenges and price pressure, with proactive restructuring and efficiency measures.

• Sustainability initiatives advanced, including the launch of a low CO2 window in Finland and first Scope 3 reporting, contributing to a 15% reduction in greenhouse gas emissions since 2022.

• Board proposes a dividend of SEK 5.50 per share, reflecting strong cash flow and capital structure considerations.

Financial highlights

• Q4 2024 net sales increased by 7% to SEK 2,423 million, with organic growth of 5%; full-year net sales declined 1% to SEK 8,838 million, with organic growth at -6%.

• Q4 operating EBITDA/EBITA was SEK 296 million (up 2%), with a margin of 12.2% (down from 12.7% in Q4 2023); full-year margin was 10.8% (down from 11.4%).

• Profit after tax for the full year fell by 18% to EUR 576 million, and EPS declined by 21% to SEK 9.29, impacted by restructuring and currency effects.

• Net debt/operating EBITDA was 1.0–1.1x (0.7x excluding IFRS 16), well within the target of 2.5x.

• Gross margin for the year was 25.4% (down from 25.8%).

Outlook and guidance

• Targeting SEK 20 billion in sales by 2030, supported by organic growth, M&A, and operational efficiency.

• Expecting improved market conditions and higher volumes in 2025, particularly in Eastern Europe, with positive macroeconomic indicators and momentum since Q2 2024.

• Continued focus on M&A, with active cases in both existing and new geographic markets, especially Central and Eastern Europe.

• Anticipate higher CapEx levels (~4% of sales) in coming years to compensate for pandemic-era underinvestment.

• Growth drivers include normalization in renovation demand, pent-up new build demand, and the EU's green transition.